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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: loantech who wrote (36303)	7/19/2005 12:00:01 PM
From: Tommaso	Read Replies (1) \| Respond to of 110194

>>>How does a regular middle of the roader expect to pay back $250,000 or $450,000 on a mortgage when they constantly refi their balance?<<< Yes, I can hardly believe what a burden a $35,000 mortgage seemed to me. Of course, it was at 8.5% interest, which made it a little more onerous than current rates, and payments included taxes and insurance, which gradually ratcheted upwards. But I certainly agree that a lot of these folks taking out mortgages of the size you mention will never have the income to pay off the principal, or if they have it now, may lose it if they lose their jobs. I lack the imagination to conceive what the outcome is going to be.